Question

Steps in Preparing a Production Report Recently, Stillwater Designs expanded its market by becoming an original equipment supplier to Jeep Wrangler. Stillwater Designs produces factory upgraded speakers specifically for Jeep Wrangler. The Kicker components and speaker cabinets are outsourced with assembly remaining in house. Stillwater Designs assembles the product by placing the speakers and other components in cabinets that define an audio package upgrade and that can be placed into the Jeep Wrangler, producing the desired factory-installed appearance. Speaker cabinets and associated Kicker components are added at the beginning of the assembly process. Assume that Stillwater Designs uses the weighted average method to cost out the audio package. The following are cost and production data for the assembly process for April: Production: Units in process, April 1, 60% complete 60,000 Units completed and transferred out Units in process, April 30, 20% complete 150,000 30,000 Costs: WIP, April 1: Cabinets $1,200,000 Kicker components Conversion costs 12,600,000 5,400,000 Costs added during April: Cabinets $2,400,000 Check My Work 5 more Check My Work uses remaining Previous Email Instructor Save and Ex Submit Assignment for Grading

Answer 1

Solution:

Stillwater Designs
Production Cost report - Assembly Department
Computation of Equivalent unit of Production
Particulars	Physical Units	Cabinets	Kicker Components	Conversion
Units to account for:
Beginning WIP	60000
Started into Production	120000
Total units to account for	180000
Units accounted for:
Unit completed & Transferred out	150000	150000	150000	150000
Units in ending inventory:	30000
Cabinets (100%)		30000
Kicker components (100%)			30000
Conversion (20%)				6000
Equivalent units of production	180000	180000	180000	156000

Stillwater Designs Computation of Cost per equivalent unit - Assembly department
Particulars	Cabinets	Kicker Components	Conversion	Total
Opening WIP	$1,200,000	$12,600,000	$5,400,000	$19,200,000
Cost Added during Period	$2,400,000	$25,200,000	$8,640,000	$36,240,000
Total cost to be accounted for	$3,600,000	$37,800,000	$14,040,000	$55,440,000
Equivalent units of production	180000	180000	156000
Cost per Equivalent unit	$20.00	$210.00	$90.00

Stillwater Designs Computation of Cost of ending WIP and units completed & transferred out - Assembly Department
Particulars	Cabinets	Kicker Components	Conversion	Total
Equivalent unit of Ending WIP	30000	30000	6000
Cost per equivalent unit	$20.00	$210.00	$90.00
Cost of Ending WIP (Equivalent unit * Cost per equivalent unit)	$600,000	$6,300,000	$540,000	$7,440,000
Units completed and transferred	150000	150000	150000
Cost of units completed & Transferred (Unit completed * cost per equivalent unit)	$3,000,000	$31,500,000	$13,500,000	$48,000,000

Cost reconciliation - Assembly Department
Particulars	Amount
Costs to be accounted for:
Cost of beginning WIP inventory	$19,200,000.00
Cost added to production	$36,240,000.00
Total Costs to be accounted for	$55,440,000.00
Costs accounted for as follows:
Cost of unit transferred out	$48,000,000.00
Ending WIP	$7,440,000.00
Total costs accounted for	$55,440,000.00